Wording in Business Contracts Matters - What Every Business Owner Should Know

 Posted on November 09, 2016 in DuPage County Business Law Attorney

If you are like most people, you were probably told at a fairly young age that you should carefully read everything you sign, especially contracts. If you are a business owner, it is likely that you now understand why: the wording of a contract matters. More than that, the wording of a contract can change everything. Just a single misunderstood phrase can make or break a litigation claim. Protect your company with effective wording and help from the following information.

Ways Poor Wording Can Jeopardize Your Company

Contracts are used for almost any and every business transaction and agreement - from those forged with suppliers, to those signed by clients or customers, and right on down to the ones your employees sign. So, really, poor verbiage in a contract can jeopardize your company in pretty much every way imaginable. It can lead to litigation for not meeting consumer expectations. It can result in losses with suppliers. It can even lead to wrongful termination lawsuits or other employment litigation matters.

Key Elements to Include in Company Contracts

Because every contract is different, and each will have a different purpose, it is important to speak with an experienced legal consultant before issuing a contract to an employee, partner, supplier, distributor, client, or customer. This can help to ensure that the verbiage is protective to your company, and that you have not missed any key elements for your company's need or industry. Examples of these elements may include (but are not limited to):

• Concise verbiage to reduce confusion and misunderstanding;
• Service/product warranties, exclusions, and limitations;
• Liability limitations and/or exclusions;
• Information on how disputes may be resolved;
• Expiry of any expressed guarantees or warranties;
• Clause releasing you from a breach of contract in the event of unforeseen circumstances; and
• Information on pricing, penalties, interest, payments, or other service/product details.

Negotiating Contracts with Suppliers and/or Distributors

If you are not the one drafting a contract, but must view it and sign it in agreement with a supplier, distributor, affiliate, or other partner company, it is critical that you have the contract reviewed by your attorney before signing. This can help ensure your company's best interest is protected. If plausible and necessary, your attorney may even be able to negotiate better terms for your business.

Whether you need assistance reviewing a contract or drafting one for clients, consumers, employees, or others, our DuPage County business contract lawyers can help. Dedicated and experienced, we protect your company's interest and seek to ensure your business thrives. Schedule your consultation with Stock, Carlson & Asso. LLC to learn more. Call 630-665-2500 today.

Source:

http://www.forbes.com/sites/allbusiness/2013/10/03/big-legal-mistakes-made-by-start-ups/#463288d8488f